Here we have significantly dropped prices

Rémy Cointreau has erected the increase in prices in dogma. Towards and against the crisis, such as to counteract the bad fate. In FY 2009-2010, wines and spirits Group increased its rates of 7 to 10 on all of its markets and its products, which helped sales to grow by 13 to EUR 808 million.

In some countries, such as the Korea and the Mexico, Rémy Cointreau did not hesitate to apply increases of 60, even losing volumes. "This is not important." What matters in our eyes, is the evolution of the net, said Jean-Marie Laborde, the Director-General. We wanted to take advantage of the recovery in hand of our distribution to bring order and confirmed our high range positioning.

The bet is no shortage of daring, as the group plans to continue the increase in prices this year, despite the lack of visibility on the evolution of consumption. The increases will be less strong in 2010-2011, to "take account of the competition", however moderate direction. Rémy Martin is already the most expensive cognac brand of all.

For the moment, this policy benefited not at all the results. The French company has lost in profitability in the fiscal year closed end of March, with an operating margin of 17.3, 19.2 in 2008. The net result is stable at EUR 86.3 million.

Rémy Cointreau has voluntarily much spent in promotion and marketing, reducing all the benefit, but the reasoning must be understood in the long term. The effort will continue this year through a strengthening of the commercial teams in the United States and Asia. The US market is expected to improve, but he does find likely not its level of growth for three years, according to the Director of the group.

It is in Asia that Rémy Cointreau has obtained its best scores. And indeed, its leaders are well find the rank of leader of the cognac lost in 2000 by 2015. More than a third of the turnover is concentrated in this area of the world with cognac, totalling only about 60 of the global activity of Rémy Cointreau. On this niche, "it is one of the best years that we have made for a long time," welcomes Jean-Marie Laborde.

Better days for the champagne

The branch liqueurs and spirits gave much less satisfaction. The contraction of the volume of sales (-5,8) was offset by the aggressive nature of the pricing policy. The sale of liquor has much suffered from the crisis in Greece, usually large consumer of Metaxa. The flow of this product in the countries of the East also decreased, but in the current year announces best. A forecast which does not apply to the Greece, where the situation instead likely to worsen.

Although champagne activity, full restructuring, a loss of EUR 4 million, Rémy Cointreau remains "very confident" in the back of better days. Volumes almost regained the level prior to the crisis, says Jean-Marie Laborde. To catch up with the sales, will need to wait three or four years. Here, "we have significantly dropped prices." About 7 or 8 euros the bottle. "This is does not instantly", says the Director-General. Not question "release case-sensitive." "We will do when the market will be positive." In champagne, the objective is to reach 15 operating margin, as competition.